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London house prices rise by a staggering £4,500 a month

by Simon Harris: Political Correspondent

House prices in London are going up by a staggering £4,500 a month, according to a new survey. The figures come after new warnings about the risk posed by the capital's overheating housing market to Britain's economic recovery.

Credit: PA

The latest House Price Index compiled by the website Rightmove graphically illustrates the surge in London property values.

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House prices 'at strongest level' for years

House prices have been rising over the past few years Credit: REUTERS/Andrew Winning

Surveyors have reported that house sales have lifted to their strongest levels in six years.

The report, from the Royal Institution of Chartered Surveyors, comes with expectations that property prices are set to life even higher across the country.

However, there are also signs the pace of house price growth seen in London could cool later in the year.

House prices 'rising by over £700 a day' in parts of London

Estate agents who market property in some of the most exclusive parts of London claim it's rising on average by more than £700 a day.

House prices are rising in London Credit: ITV News

Marsh and Parsons' say that the average current price for three bedroom properties in 'Prime London' is £1,670,339.

They say that properties in their portfolio appreciated by 19% in the last year, fuelled by increasing interest from both foreign and British investors.

CIH: Parts of London are 'preserve of wealthy'

The Chief Executive of the Chartered Institute of Housing, Grania Long, has called for the government to urgently increase its housing building programme to stop parts of London becoming 'the preserve of the wealthy elite'.

The combined impact of high rents and local housing allowance reform means that poorer families are effectively being priced out of the private rented sector in some areas of London. My biggest concern is where they are ending up - social housing is at a premium across the capital...

It cannot be right that some areas of the capital are becoming the exclusive preserve of the wealthy elite or that people on lower incomes are simply unable to afford to live in the places where they work. Increasing the number of new homes we build is vital if we are to have any hope of sustaining mixed communities.

– Grainia Long, Chief Executive, Chartered Institute of Housing

Poorer families 'priced out' of London

Poorer families are being forced out of the London private Credit: Reuters

Poorer families are being priced out of London according to new research from the Chartered Institute of Housing.

In Kensington and Chelsea the number of people claiming housing benefit in the private rental sector has fallen by more than a quarter since March 2011. It has fallen by nearly a third in Westminster, according to figures released by the Department of Work and Pensions.

However the number of people claiming housing benefit across London has risen, especially claims from people who are working.

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Property sales hit 10 year high

London property sales have grown at the fastest rate in 10 years. Between March and September last year, 100% of London suburbs recorded an increase in sales, compared to the year before.

The North, the West Midlands, Wales and London were named in the Lloyds Bank report as the regions with the biggest proportion of "property hot spots". It also found the biggest increase was in the East London suburb of Newham, which recorded an annual increase of 62%.

The bank has attributed the rise to low interest rates, improvements in consumer confidence and the introduction of government schemes.

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